They turned the bedroom along the steps into the living room.
The bedroom next to the bathroom and at the end of the hallway they left.
They opened up the living room with lots of "windows" in between beams so the room was more often and not closed off like a bedroom.
the also figured this way if they ever want to install a door between the 2 bedrooms and the rest of the floor for privacy it is possible.
I live in a large 5 bed bilevel and honestly it's not my favorite layout. We were kind of clueless when we bought it. If we move we will probably move to a colonial, which I feel provides a better layout and more privacy.